VoCab Flashcards
pathogen
disease-causing organism
aerobic
Organisms that require oxygen for life
anaerobic
Organisms that do not require oxygen for life
Fungus
Plant-like, filamentous, or single-celled eukaryotic organism
To maintain profitability, many pharmacies have diversified their products and services, such as:
- Immunizations
- Specialty compounds
- Nutritional counseling
- Disease state management services
- Plus OTC health and beauty products, gifts, food, etc.
all vital components of a successful business.
Controlling inventory, accounts receivable, cash flow, and variable expenses
Goal is?
to make a profit while caring for patient needs
Cost is the
The amount the pharmacy paid for the product from the wholesaler or manufacturer
Cost also called
“invoice cost” or “acquisition cost”
Cost also called “invoice cost” or “acquisition cost” important for
Important for quarterly or annual inventory
Selling price is the
amount the pharmacy receives when the product is sold
Selling price also known as the
retail price
For prescription products, the selling price is
divided between the patient’s co-payment and the third-party insurer
Many pharmacies use a coding system in which numbers are
represented by letters in a particular word
Many third-party plans operate under a
tiered co-payment system.
tiered co-payment system?
Generic products (smallest co-pay) Preferred brand-name products (intermediate co-pay) Nonpreferred brand-name products (highest co-pay)
Reimbursement formulas set by the plan are used to
calculate the total price for each prescription.
Total price and the customer co-payment are transmitted back to the pharmacy system at
the time of processing.
AWP:
most current average wholesale price
Most pharmacy systems perform a weekly
update of all drug files using the AWP data
Balance due to pharmacy is batched with
other claims from the same processor, who pays by check or electronic transfer.
When patients are purchasing OTC products with RX products, patients may not
pay the full selling price for medications
Selling Price =
Cost + Markup
Markup =
Selling Price − Cost
